The price of Ethereum continues to face downward pressure, but demand and adoption has not subsided in some areas of the market, particularly ETH treasury. Digital asset treasury has become a key part of the market since its introduction, and ETH treasury has grown exponentially, breaking records.
Ethereum Treasury Accumulation Reaches Historic Milestone
In a still volatile market context, the Ethereum treasure is turning heads, attracting a significant wave of demand and interest from businesses. After recent initiatives by several financial giants to hold an ETH treasury reserve, the initiative now comes at a crucial juncture that could trigger a new phase.
A new report by Leon Waidmann, optimist and head of research at Lisk, shows that Ethereum is experiencing a growing wave of institutional belief as ETH holdings of corporate treasury companies reach all-time highs. Companies are regularly including the leading altcoin on their balance sheets, indicating a broader shift in how they categorize ETH.
Concretely, these large financial companies no longer see Ethereum as a speculative asset but as a strategic digital reserve asset within the evolving crypto economy. A year ago, the Ethereum treasury did not exist. However, during this period, the initiative has seen immense growth, with millions of ETH now held by companies in the crypto and financial sectors.
Data shared by Waidmann shows that more than 7.4 million ETH is now held in institutions’ cash reserves. Compared to the overall circulating Ethereum supply, this figure represents approximately 6.6% of the overall circulating Ethereum supply. the stack.
Even though Ethereum Treasury companies have received a lot of criticism, the expert says some of them are only partially understandable. Given the substantial growth from 0 to 74 million ETH in 12 months, Waidmann believes that ETH treasury is still significantly underestimated.
A large company at the forefront of adoption is Bitmine Immersion Technologiesas the public company continues to add ETH to its crypto vault. On Tuesday, the company led by Tom Lee, bought additional ETH worth over $120 million.
After the purchase, Bitimine’s ETH holdings are valued at a staggering $9.21 billion, which currently equates to 3.75% of the total ETH supply. Additionally, a large portion of its ETH holdings, specifically $6.18 billion, are locked in staking. This represents over 2.5% of the total ETH supply.
ETH price next month depends on stochastic RSI
In an analysis using the one-day time frame, Merlin The Trader, investor and market expert, revealed that Ethereum’s Stochastic Relative Strength Index (RSI) has moved from the overbought region. Interestingly, this key configuration has has appeared several times in the pastand could dictate his next possible move.
The last time the pattern happened, the expert said the ETH price had fallen from $3,400 to $1,800. Currently, the same Bollinger band pattern and structure is developing. If ETH remains above $2,000, the withdrawal will be zero. Meanwhile, the loss of the level will trigger a decline to the $1,600 mark.
Featured image from Pexels, chart from Tradingview.com
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